turning of the tide, page-31

Buddy134,

You've given a pretty good description of the process for a Renounceable Rights Issue (RRI) as compare to a Non-Renounceable Rights Issue (RI), as well as some comparison to a Security Purchase Plan (SPP).

A couple of other critical characteristics that people should be aware of. Both an RRI and RI can be arranged as fully underwritten, partially underwritten or with no underwriting. Therein lies one clue as to whether there is potential (liklihood?) of price manipulation during the process, to the benefit of an underwiter.

The other major difference between an RRI/RI and a SPP is the timing of the "Record Date" - i.e. the date on which you must be a REGISTERED holder of the securities in order to gain an entitlement.

For an RRI or RI, that date is ALWAYS some date AFTER the announcement of an Issue. That means that anyone can then buy in and earn a right to participate (but of course the level of participation is relative to the number of shares held so there's not much point in just buying a couple of shares).

For an SPP, the Record Date is actually the day BEFORE the announcement of an SPP. That means if you didn't know it was coming and didn't buy at least four days before the date of the announcement, you can't suddenly buy in to get a piece of the action. This pre-dating of the Record Date is a recent change and was made specifically to reduce the potential for manipulation after the announcement of an SPP.

And in fairness to DJ1, you did originally say a Renounceable SPP which is not something that actually exists - afaik?

Cheers

Badfish